Distance correlation

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The Multidimensional Poverty Index (MPI) was developed in 2010 by Oxford Poverty & Human Development Initiative and the United Nations Development Programme[1] and uses different factors to determine poverty beyond income-based lists. It replaced the previous Human Poverty Index.

The MPI is an index of acute multidimensional poverty. It shows the number of people who are multidimensionally poor (suffering deprivations in 33.33% of weighted indicators) and the number of deprivations with which poor households typically contend. It reflects deprivations in very rudimentary services and core human functioning for people across 104 countries. Although deeply constrained by data limitations, MPI reveals a different pattern of poverty than income poverty, as it illuminates a different set of deprivations.

Indicators

The index uses the same three dimensions as the Human Development Index: health, education, and standard of living. These are measured using ten indicators.

Dimension Indicators
Health
  • Child Mortality
  • Nutrition
Education
  • Years of school
  • Children enrolled
Living Standards
  • Cooking fuel
  • Toilet
  • Water
  • Electricity
  • Floor
  • Assets

Each dimension and each indicator within a dimension is equally weighted.

Calculation of the index

Formula

The MPI is calculated as follows:[2]

H: Percentage of people who are MPI poor (incidence of poverty)
A: Average intensity of MPI poverty across the poor (%)

Indicators used

The following ten indicators are used to calculate the MPI:[3]

  • Education (each indicator is weighted equally at 1/6)
  1. Years of schooling: deprived if no household member has completed five years of schooling
  2. Child school attendance: deprived if any school-aged child is not attending school up to class 8
  • Health (each indicator is weighted equally at 1/6)
  1. Child mortality: deprived if any child has died in the family
  2. Nutrition: deprived if any adult or child for whom there is nutritional information is malnourished
  • Standard of Living (each indicator is weighted equally at 1/18)
  1. Electricity: deprived if the household has no electricity
  2. Sanitation: deprived if the household’s sanitation facility is not improved (according to MDG guidelines), or it is improved but shared with other households
  3. Drinking water: deprived if the household does not have access to safe drinking water (according to MDG guidelines) or safe drinking water is more than a 30-minute walk from home roundtrip
  4. Floor: deprived if the household has a dirt, sand or dung floor
  5. Cooking fuel: deprived if the household cooks with dung, wood or charcoal
  6. Assets ownership: deprived if the household does not own more than one radio, TV, telephone, bike, motorbike or refrigerator and does not own a car or truck

A person is considered poor if they are deprived in at least 33.33% of the weighted indicators. The intensity of poverty denotes the proportion of indicators in which they are deprived.

Real example

Niger:[4]

  • MPI = 0.642
  • H = 0.927
  • A = 0.693

In Niger, 92.7% of the country's population is MPI poor (they are deprived in at least 33.33% of the weighted indicators, by definition). Those who are MPI poor suffer from deprivation in 69.3% of indicators, on average.

Fictional example

Country X consists of persons A, B and C. The following table shows the deprivation on each of the 10 indicators for persons A, B and C.

"0%" indicates no deprivation in that indicator, while "100%" indicates deprivation in that indicator.

Indicator Weight Person A Person B Person C
1 1/6 0% 0% 0%
2 1/6 0% 0% 0%
3 1/6 100% 100% 0%
4 1/6 0% 100% 0%
5 1/18 0% 100% 100%
6 1/18 0% 100% 100%
7 1/18 0% 0% 100%
8 1/18 100% 100% 100%
9 1/18 100% 0% 100%
10 1/18 100% 0% 0%
Weighted score 33.33% 50.00% 27.78%
Status MPI poor MPI poor Not MPI poor

Factor H for country X is:

Factor A for country X is:

Thus, the MPI for country X is:

MPI in some developing countries

Country MPI % of People
who are
MPI Poor
Average
Intensity of
MPI Poverty
Number of MPI
Poor People
(thousands)
Year % of People who
are Income Poor
($1.25/day)
% of People who
are Income Poor
($2.00/day)
Year
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0.005 1.4 37.7 45 2009 0.6 4.3 2008
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0.452 77.4 58.4 11,136 2001 54.3 70.2 2000
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0.011 3.0 37.7 1,160 2005 0.9 2.4 2009
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0.004 1.1 36.2 34 2005 1.3 12.4 2008
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0.021 5.3 39.4 461 2006 1.0 7.8 2008
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0.292 57.8 50.4 83,207 2007 49.6 81.3 2005
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0.000 0.0 35.1 0 2005 0.1 0.2 2008
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0.024 5.6 42.6 16 2006 12.4 24.5 1999
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0.412 71.8 57.4 5,652 2006 47.3 75.3 2003
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0.119 27.2 43.9 197 2010 26.2 49.5 2003
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0.089 20.5 43.7 1,972 2008 13.6 25.1 2007
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0.003 0.8 37.2 30 2006 0.0 0.2 2007
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0.011 2.7 39.3 5,075 2006 3.8 9.9 2009
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0.536 82.6 64.9 12,078 2006 56.5 81.2 2003
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0.530 84.5 62.7 6,127 2005 81.3 93.5 2006
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0.251 52.0 48.4 6,946 2005 28.3 56.5 2007
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0.287 53.3 53.9 9,149 2004 9.6 30.4 2007
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0.512 86.4 59.3 3,199 2000 62.8 80.1 2008
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0.344 62.9 54.7 5,758 2003 61.9 83.3 2003
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0.056 12.5 44.9 161,675 2003 15.9 36.3 2005
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0.022 5.4 40.9 2,500 2010 16.0 27.9 2006
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0.408 73.9 55.2 415 2000 46.1 65.0 2004
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0.353 61.5 57.4 11,083 2005 23.8 46.3 2008
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0.016 4.4 36.3 196 2003 0.1 0.1 2008
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0.010 3.1 33.4 316 2003 0.1 0.2 1996
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0.139 29.3 47.3 241 2006 18.8 41.2 2002
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0.018 4.6 39.4 438 2007 4.3 13.6 2007
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0.393 73.2 53.7 44,485 2007 59.2 79.6 2006
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0.009 2.2 41.6 286 2003 4.4 13.6 2009
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0.024 6.0 40.7 4,699 2008 2.0 18.5 2005
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0.026 7.2 36.5 97 2003 0.5 1.5 2004
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0.562 88.6 63.5 65,798 2005 39.0 77.6 2005
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0.161 35.4 45.5 437 2000 4.8 19.6 2005
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0.324 60.4 53.6 934 2006 34.3 56.7 2003
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0.003 0.8 35.2 36 2005 15.3 32.2 2008
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0.144 31.2 46.2 7,258 2008 30.0 53.6 2006
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0.127 25.9 49.1 3,134 2003 11.7 24.3 2006
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0.506 82.5 61.3 7,459 2005 43.3 69.6 2007
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0.053 13.4 39.5 100 2005 8.7 18.0 1998
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0.299 56.4 53.0 5,346 2006 54.9 72.2 2001
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0.159 32.5 48.9 2,281 2006 23.3 35.4 2007
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0.016 4.6 34.3 466 2003 0.2 0.4 2007
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0.283 53.7 52.7 612,203 2005 41.6 75.6 2005
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0.095 20.8 45.9 48,352 2007 18.7 50.6 2009
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0.059 14.2 41.3 3,996 2006 4.0 25.3 2007
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0.008 2.4 34.4 145 2009 0.4 3.5 2006
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0.002 0.6 36.9 92 2006 0.2 1.5 2007
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0.229 47.8 48.0 18,863 2009 19.7 39.9 2005
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0.019 4.9 38.8 249 2006 1.9 29.4 2007
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0.267 47.2 56.5 2,757 2006 33.9 66.0 2008
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0.006 1.6 37.9 37 2003 0.3 1.0 2004
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0.156 35.3 44.1 759 2009 43.4 62.3 2003
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0.485 83.9 57.7 2,917 2007 83.7 94.8 2007
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0.008 1.9 40.9 39 2005 0.3 4.3 2008
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0.357 66.9 53.3 13,463 2009 67.8 89.6 2005
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0.381 72.1 52.8 8,993 2004 73.9 90.5 2004
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0.018 5.2 35.6 16 2009 1.5 12.2 2004
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0.558 86.6 64.4 11,772 2006 51.4 77.1 2006
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0.352 61.7 57.1 1,982 2007 21.2 44.1 2000
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0.015 4.0 38.9 4,313 2006 1.8 8.6 2008
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0.007 1.9 36.7 72 2005 1.9 12.5 2008
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0.065 15.8 41.0 402 2005 22.4 49.1 2005
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0.006 1.5 41.6 9 2005 0.1 0.2 2008
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0.048 10.6 45.3 3,287 2007 2.5 14.0 2007
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0.512 79.3 64.6 18,127 2009 59.6 81.8 2008
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0.154 31.8 48.3 14,297 2000
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0.187 39.6 47.2 855 2007 49.1 62.2 1993
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0.350 64.7 54.0 18,009 2006 24.82 57.25 2010
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0.128 28.0 45.7 1,538 2006 15.8 31.9 2005
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0.642 92.4 69.4 12,437 2006 43.1 75.9 2007
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0.310 54.1 57.3 81,510 2008 64.4 83.9 2004
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0.005 1.4 37.3 52 2007
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0.264 49.4 53.4 81,236 2007 22.6 61.0 2006
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0.064 13.3 48.5 755 2003 5.1 13.2 2008
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0.086 19.9 43.2 5,421 2004 5.9 14.7 2009
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0.064 13.4 47.4 12,083 2008 22.6 45.0 2006
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0.208 40.6 51.2 1,600 2009 54.1 74.4 2005
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0.005 1.3 38.9 1,883 2003 0.0 0.1 2008
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0.426 80.2 53.2 7,380 2005 76.8 89.6 2005
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0.154 34.5 44.7 56 2009 29.7 55.9 2001
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0.384 66.9 57.4 7,273 2005 33.5 60.4 2005
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0.003 0.8 40.0 79 2005 0.1 0.7 2008
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0.439 77.0 57.0 4,321 2008 53.4 76.1 2003
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0.000 0.0 0.0 0 2003 0.3 1.4 1996
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0.514 81.2 63.3 6,940 2006
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0.057 13.4 42.3 6,609 2008 17.4 35.7 2006
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0.021 5.3 38.7 1,027 2003 7.0 29.1 2007
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0.039 8.2 47.2 41 2006 15.5 27.2 1999
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0.184 41.4 44.5 469 2007 62.9 81.0 2001
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0.021 5.5 37.5 1,041 2006 1.7 16.9 2004
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0.068 17.1 40.0 1,103 2005 21.5 50.9 2004
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0.367 65.2 56.3 27,559 2008 67.9 87.9 2007
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0.006 1.6 38.5 1,067 2005 0.4 11.5 2004
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0.360 68.1 52.9 749 2009 37.4 72.8 2007
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0.284 54.3 52.4 3,003 2006 38.7 69.3 2006
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0.020 5.6 35.1 74 2006 4.2 13.5 1992
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0.010 2.8 37.1 272 2003 2.6 12.8 2000
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0.028 6.6 42.0 4,378 2003 2.7 9.1 2005
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0.367 72.3 50.7 21,235 2006 37.7 64.5 2009
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0.008 2.2 35.5 1,018 2007 0.0 0.1 2008
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0.002 0.6 35.3 20 2003
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0.006 1.7 34.7 56 2003 0.0 0.2 2009
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0.008 2.3 36.2 603 2006 46.3 76.7 2003
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0.129 30.1 42.7 67 2007
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0.084 17.7 47.2 14,249 2002 13.1 38.5 2008
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0.283 52.5 53.9 11,176 2006 17.5 46.6 2005
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0.328 64.2 51.2 7,739 2007 64.3 81.5 2004
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0.180 39.7 45.3 4,974 2006

Source: Alkire, S. Roche, JM. Santos, ME. and Seth, S (November 2011) http://ophi.qeh.ox.ac.uk . Multidimensional Poverty Index: 2011 Data. Oxford Poverty and Human Development Initiative. Available at: www.ophi.org.uk/policy/multidimensional-poverty-index/.

See also

References

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